No decision taken on disinvestment of Hindustan Zinc Ltd: Centre to SC

New Delhi: The Centre informed the Supreme Court that no decision has been taken yet on the proposed disinvestment of government stake in Hindustan Zinc Ltd as Finance Minister Arun Jaitley was indisposed in the last few days.

A bench headed by Justice J S Khehar, which also wanted to know about the status of CBI probe into HZL which happened during the previous NDA regime in 2002, was told that the proposed disinvestment of government's stake in the PSU is unlikely to happen in the coming two to three months.

The Centre's submission was made through Additional Solicitor General Tushar Mehta, who was also asked to give specific timeframe within which the preliminary probe into the sale of HZL to Vedanta-promoted Sterlite Opportunities and Ventures Ltd in 2002-03 would be finalised.

The bench posted the next date of hearing for October 14.

The court was hearing a PIL filed by the National Confederation of Officers' Associations of Central Public Sector Undertakings challenging the proposed disinvestment saying the decision is "irrational, illogical, illegal, unreasonable, mala fide and arbitrary".

The Association sought a direction to restrain the Centre from going ahead with disinvestment till the case is pending.

The ASG opposed the plea saying the issue was still at preliminary stages and a final decision was anyway not possible in two to three months.

CBI had earlier informed the court that the agency had registered a preliminary investigation into the sale of a part of the government's share in the PSU to the Vedanta's subsidiary in 2002-03, but a final call whether to file a regular case or close the case was pending.